Is a Burros Fries franchisee allowed to use the brand's proprietary materials as they see fit?
Burros_Fries Franchise · 2024 FDDAnswer from 2024 FDD Document
other franchisees as we deem appropriate.
The Franchise Agreement provides that you will not acquire any interest in the Confidential Information other than the right to utilize it in the development and operation of your Business during the term of your Franchise Agreement, and that the use or duplication of the Confidential Information in any other business would constitute unfair competition. You also agree that the Confidential Information is proprietary to us and is disclosed to you solely on the condition that you: (1) will not use the Confidential Information in any other business or capacity; (2) will maintain the absolute confidentiality of the Confidential Information during and after the term of your Franchise Agreement; (3) will not make unauthorized copies of any portion of the Confidential Information disclosed in written or electronic form; and (4) will adopt and implement all reasonable procedures required by us to prevent unauthorized
use or disclosure of the Confidential Information, including without limitation, restrictions on disclosures to employees of your Franchise and any other business(es) owned by you and if you are an Entity, any of your Owners, and the use of nondisclosure and non-competition clauses in employment agreements with your employees and Owners, where enforceable under State law.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
The Franchise Agreement provides that a Burros & Fries Business must at all times be under direct, day-to-day, full time supervision. Unless otherwise approved by us in writing, we require that you personally (or if you are an Entity such as a limited liability company, then a managing Owner of such Entity) be involved in the day-to-day operations of your Business for at least the first year your Business opens for operation. After your first year of operation, we do not require that you personally (or if you are an Entity such as a limited liability company, then a managing Owner of such Entity) be involved in the day-to-day operations of your Business, but your Business must at all times be under the operation of a manager ("General Manager") whose identity must at all times be disclosed to us.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD pages 42–44)
What This Means (2024 FDD)
According to Burros Fries's 2024 Franchise Disclosure Document, franchisees are explicitly restricted in how they can use the brand's proprietary materials. The FDD states that franchisees do not acquire any ownership interest in the confidential information, but only have the right to use it for their Burros Fries business during the term of the Franchise Agreement. Using or duplicating this information in any other business is considered unfair competition.
Burros Fries considers methods, techniques, operational procedures, products, menu items, retail items, product specifications, recipes, photographs of food, designs, décor, graphics, menus, signage, manuals, and all related advertising and promotional materials as proprietary and confidential. These materials are the property of Burros Fries and can only be used as specified in the Franchise Agreement.
Furthermore, franchisees must maintain the absolute confidentiality of this information both during and after the term of the agreement. They are prohibited from making unauthorized copies and must implement procedures to prevent unauthorized use or disclosure, including imposing restrictions on employees and owners, and using non-disclosure and non-competition agreements where enforceable by state law. Franchisees must also notify Burros Fries of any potential infringement or challenges to the use of copyrighted materials and must comply with any directions from Burros Fries to modify or discontinue the use of materials.